CHLORIDE, AZ, June 22, 2011 /PRNewswire/ - Hondo Minerals Corporation (OTCBB: HMNC.OB) announces its quarterly review.
William R. Miertschin, Chairman and CEO of Hondo Minerals said, "We have completed the most dynamic and exciting quarter in Hondo's history. Through tireless efforts of our core group and that of our many associates, we are poised to make our visions and dreams become reality. The support we have received is gratifying, and we are truly grateful for it. Not only has Hondo become a trading entity with a considerable following, the Company has achieved a level of financial viability that has allowed us to focus on our operations." Miertschin added, "Hondo has fully paid for $2.4 million of mining equipment, as well as our own laboratory and testing facility and considerable excavation, transportation and rolling stock. We are currently generating and storing ionized water for mineral leaching while awaiting regulatory approvals to begin processing."
Liquidity and Capital Resources At April 30, 2011, the Company's cash balance was $1,272,895 compared to $10,637 as at April 30, 2010. The increase in cash is attributed to the sale of common stock. We do have sufficient cash on hand to commence initial production and to fund our ongoing operational expenses beyond 12 months.
Cashflow from Operating Activities During the period ended April 30, 2011, the Company used $200,104 of cash for operating activities compared to the use of $28,863 of cash for operating activities during the period ended April 30, 2010.Cashflow from Financing Activities During the period ended April 30, 2011, the Company received $2,629,507 of cash from financing activities compared to $0 for the period ended April 30, 2010. Review of Events: On March 7, 2011, the Financial Industry Regulatory Authority (FINRA), approved and processed the Company's name change, and the Company's common stock was issued the new trading symbol of "HMNCD" to reflect this name change. Subsequently, the "D" was dropped, and the Company's stock is traded under the trading symbol of "HMNC". On March 23, 2011, the Editorial Board of Standard and Poor's ("S&P"), approved the Company for their Corporation Records Market Access Program. S&P's Corporation Records is considered the premier source for information on U.S. and international public companies by investors and compliance professionals. As part of the approval, the Company's corporate profile has recently been published in the Daily News Section of S&P's Corporation Records, a securities manual for secondary trading in 38 States under the Blue Sky Laws. On April 8, 2011, we completed the superstructure of our processing facility at the Tennessee Mine. With the completion of the superstructure, the Company is now entering the final phase of the construction process of the metal building that will house the processing and extraction equipment. The Company has begun finishing the interior construction, which will allow for the installation and placement of the processing equipment On April 27, 2011, we began installing equipment that will use a newly developed technology for the abstraction of minerals at the Tennessee Mine. E-Leach, a patent pending technology that creates a leaching process without the use of hazardous chemicals, such as cyanide, has become the technology of choice for the Company's Tennessee Mine processing facility. On May 4, 2011, we found a surface vein that runs along the Tennessee and Schuylkill properties. The preliminary measurement showed that the vein is anywhere between 10 and 28 feet wide and runs approximately a half of a mile long. Based on the on the new discovery, the Company has taken samples and is awaiting the test results. The Company is currently in the process of completing the Mining Safety and Health Administration (MSHA) training, inspection and site review at the Tennessee Mine. The full mineral extraction process onsite will begin immediately following the MSHA regulatory and safety training certification. On June 14, 2011, the Company entered into a Consulting Agreement (the "Consulting Agreement") with ICR, LLC, a Connecticut limited liability company ("ICR"), pursuant to which ICR shall provide investor relations consulting services to the Company commencing on June 15, 2011. About Hondo Minerals Hondo Minerals Corporation is engaged in the acquisition of mines, mining claims and mining real estate in the United States, Canada and Mexico with mineral reserves of precious metals or non-ferrous metals. Hondo owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The Tennessee Mine was the largest producing silver mine in Arizona history. The Tennessee Mine operated from the late 1800′s until 1947 producing lead, zinc, gold and silver. The Company also owns numerous other mining claims in the US Southwest, which are being evaluated for additional reserves. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements that involve risks and uncertainties, including the Company's beliefs about its business prospects and future results of operations. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10-KSB and 10-QSB. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public. SOURCE Hondo Minerals Corporation